If given the chance, Indonesia’s COVID-19 stimulus can build a green, resilient economy

This statement by the Climate Policy Initiative argues that Indonesia should utilize its COVID-19 stimulus packages to transition toward a green, resilient, and inclusive economy rather than reinforcing fossil fuel dependence. The author suggests three primary adjustments: accelerating green industry growth through fiscal policy, diversifying and decentralizing essential resources like energy and food, and decoupling economic growth from resource use to reduce vulnerability to market shocks.

• Indonesia's current energy profile is heavily dependent on fossil fuels, with coal powering approximately 50% of electricity and oil fueling nearly all transportation, while renewable energy accounts for less than 10%.
• The author contends that existing stimulus packages fail to support green industries, instead providing financial aid to the mining, oil, and gas sectors, while a new mining law extends coal concessions for up to 20 years.
• To build resilience against future shocks, the document recommends using stimulus investments to decentralize energy through off-grid renewable systems for rural areas and to diversify agriculture in regions suffering from single-commodity traps, such as the Berau district of East Kalimantan where palm oil occupies 90% of agricultural land.
• The document highlights that 88 districts in Indonesia, home to 7 million people, are already food insecure, necessitating stimulus incentives for sustainable agriculture and crop diversification.
• The author suggests that Indonesia should shift toward replenishable resources (sun, wind, and water) and electric vehicles to decouple growth from resource use and reduce dependence on limited natural resources.

APA

Staff, C. (2020). If given the chance, Indonesia’s COVID-19 stimulus can build a green, resilient economy. Climate Policy Initiative. https://www.climatepolicyinitiative.org/if-given-the-chance-indonesias-covid-19-stimulus-can-build-a-green-resilient-economy/

Chicago

Staff, CPI. If given the chance, Indonesia’s COVID-19 stimulus can build a green, resilient economy. Climate Policy Initiative, 2020. https://www.climatepolicyinitiative.org/if-given-the-chance-indonesias-covid-19-stimulus-can-build-a-green-resilient-economy/.

Wikipedia

{{cite press release |last1=Staff |first1=CPI |title=If given the chance, Indonesia’s COVID-19 stimulus can build a green, resilient economy |publisher=Climate Policy Initiative |date=4 June 2020 |url=https://www.climatepolicyinitiative.org/if-given-the-chance-indonesias-covid-19-stimulus-can-build-a-green-resilient-economy/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{staff2020given, author = {Staff, CPI}, title = {{If given the chance, Indonesia’s COVID-19 stimulus can build a green, resilient economy}}, publisher = {Climate Policy Initiative}, year = {2020}, month = jun, url = {https://www.climatepolicyinitiative.org/if-given-the-chance-indonesias-covid-19-stimulus-can-build-a-green-resilient-economy/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }